Statement of Cash Flows (Indirect Method) The Wolff Company's income statement and comparative balance sheets at December 31 of 2013 and 2012 are shown below:

WOLFF COMPANY Income Statement For the Year Ended December 31, 2013
Sales Revenue		$889,000
Cost of Goods Sold	$602,000
Wages Expense	120,400
Insurance Expense	11,200
Depreciation Expense	23,800
Interest Expense	12,600
Income Tax Expense	40,600	810,600
Net Income		$78,400

WOLFF COMPANY Balance Sheets
	Dec. 31, 2013	Dec. 31, 2012
Assets
Cash	$15,400	$7,000
Accounts Receivable	57,400	44,800
Inventory	126,000	84,000
Prepaid Insurance	7,000	9,800
Plant Assets	350,000	273,000
Accumulated Depreciation	(95,200)	(71,400)
Total Assets	$460,600	$347,200
Liabilities and Stockholders' Equity
Accounts Payable	$9,800	$14,000
Wages Payable	12,600	8,400
Income Tax Payable	9,800	11,200
Bonds Payable	182,000	105,000
Common Stock	126,000	126,000
Retained Earnings	120,400	82,600
Total Liabilities and Stockholders' Equity	$460,600	$347,200

Cash dividends of $29,000 were declared and paid during 2013. Plant assets were purchased for cash and bonds payable were issued for cash. Bond interest is paid semi-annually on June 30 and December 31. Accounts payable relate to merchandise purchases. Required a. Calculate the change in cash that occurred during 2013. b. Prepare a statement of cash flows using the indirect method. c. Compute free cash flow. d. Compute the operating-cash-flow-to-current-liabilities ratio. Round to 2 decimal points. e. Compute the operating-cash-flow-to-capital-expenditures ratio. Round to 2 decimal points. a. Change in Cash during 2013 $Answer AnswerIncreaseDecrease

b. Use a negative sign with cash outflow answers.

WOLFF COMPANY Statement of Cash Flows For Year Ended December 31, 2013
Cash Flow from Operating Activities
Net Income		$Answer
Add (deduct) items to convert net income to cash basis
Depreciation		Answer
Accounts Receivable	AnswerIncreaseDecrease	Answer
Inventory	AnswerIncreaseDecrease	Answer
Prepaid Insurance	AnswerIncreaseDecrease	Answer
Accounts Payable	AnswerIncreaseDecrease	Answer
Wages Payable	AnswerIncreaseDecrease	Answer
Income Tax Payable	AnswerIncreaseDecrease	Answer
Cash Flow Provided by Operating Activities		Answer
Cash Flow from Investing Activities
Purchase of Plant Assets		Answer
Cash Used by Investing Activities		Answer
Cash Flow from Financing Activities
Issuance of Bonds Payable		Answer
Payment of Dividends		Answer
Cash Provided by Financing Activities		Answer
NetAnswerIncreaseDecreasein Cash		Answer
Cash at Beginning of Year		Answer
Cash at End of Year		$Answer

c. Free cash flow $Answer d. Operating-cash-flow-to-current-liabilities ratio. Answer e. Operating-cash-flow-to-capital-expenditures ratio. Answer